Wait for a break above 1.3477

20 October 2017, GBP/USD

Wave Analysis:

Despite making highest lows, the cable continues to correct itself downwards but is still above the recent lowest low 1.3051, as long as the price remains above this level, we expect this level to act as a support to any movements to the lower side. Thus during this intraday, we expect a possible extension of both the impulsive waves (E) and (1) to the upper side but should not go beyond the daily resistance line 1.4091. First, we're waiting for a breakout above 1.3477 to confirm the anticipated bullish price rally towards 1.4091. This pair should be traded alongside CADJPY, AUDJPY, CHFJPY and NZDJPY. These pairs have a strong negative correlation and will move different direction today.